June 25, 2024
Cannabis Cultivation Market

Cannabis Cultivation Market is Estimated to Witness Substantial Growth due to Increasing Legalization of Medical Cannabis

The cannabis cultivation market involves the development and production of medical cannabis. Cannabis has various therapeutic benefits and helps relieve pain, reduce nausea, and decrease symptoms of several diseases. It is being increasingly used to treat chronic conditions like cancer, arthritis, and diabetes. Cannabis contains components such as cannabidiol (CBD) and tetrahydrocannabinol (THC) which have medicinal properties. Cultivation and extraction techniques help separate and concentrate these compounds to produce pharmaceutical-grade extracts, oils, and other products.

The Global cannabis cultivation market is estimated to be valued at US$ 18.53 Bn in 2024 and is expected to exhibit a CAGR of 8.1% over the forecast period 2024 To 2031.

Key Takeaways

Key players operating in the cannabis cultivation market are IMBiotechnologies Ltd., ABK Biomedical Inc., EmboMedics, Guerbet, Boston Scientific Corporation, Medtronic Plc., Varian Medical Systems, Inc., Terumo Corporation, Merit Medical Systems, Inc., Cook Group, and Johnson & Johnson. The legalization of medical cannabis in more countries and states presents lucrative opportunities for market players to expand their cultivation facilities and distribution networks. Many companies are engaged in research and development activities to develop advanced products with enhanced medicinal benefits. With increasing acceptance globally, the market is expected to witness high growth in North America, Europe, Latin America, Asia Pacific, and Middle East & Africa regions.

Market drivers

The key driver fueling the growth of the Cannabis Cultivation Market Demand is the changing regulations and legalization of medical marijuana in many countries. According to the United Nations, over 50 countries have legalized medical cannabis in some form. This increasing acceptance and approval of cannabis for medical use has encouraged cultivation on a commercial scale. As research substantiates its therapeutic effects, support for legalization is growing. Cultivation and production facilities are expanding capacity significantly to meet the rising global demand for cannabis.

PEST Analysis

Political: The political landscape around cannabis cultivation is evolving. Several countries and regions have legalized or decriminalized the production and use of cannabis in recent years for both medical and recreational purposes. However, regulations around its production vary greatly in different jurisdictions.

Economic: As more markets open up to legal cannabis, the economic potential of this market is huge. The total addressable market for medical and recreational cannabis products is expected to grow multifold in the coming years. However, the industry also faces economic challenges around banking and international trade due to its controversial nature.

Social: Social attitudes towards cannabis are steadily becoming more positive and liberal. Its use for medical purposes is widely accepted now. Recreational use is also gaining acceptance, especially among younger demographics. However, some social stigma still persists around its use.

Technological: Technological innovations are enabling advances across the cannabis value chain from cultivation to manufacturing and distribution. Focus areas include development of high-yielding strains, controlled environment agriculture techniques, extraction and testing methods. Blockchain and analytics are being used to improve supply chain traceability and compliance.

Regions of concentration

The cannabis cultivation market in terms of value is concentrated in few regions of the world. North America, mainly the U.S. and Canada, currently dominates the overall market owing to the legalization of cannabis for medical and adult use in several states and provinces. The European region is also emerging as a major market supported by the increasing number of countries approving medical cannabis.

Fastest growing region

The Asia Pacific region is expected to be the fastest growing market for cannabis cultivation over the forecast period. Countries like Australia, Thailand, South Korea, China, India etc. are opening up to the cultivation and use of medical cannabis, which is driving strong growth. The APAC market is still in a development stage compared to mature North American markets, hence offers higher growth opportunities for cultivators and product manufacturers.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it